DoD's $28.7M IT services contract to Agile Defense, LLC awarded via full and open competition

Contract Overview

Contract Amount: $28,690,095 ($28.7M)

Contractor: Agile Defense, LLC

Awarding Agency: Department of Defense

Start Date: 2021-08-02

End Date: 2026-08-01

Contract Duration: 1,825 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to AGILE DEFENSE, LLC for work described as: INFORMATION TECHNOLOGY SERVICES Key points: 1. Contract awarded to Agile Defense, LLC for IT services. 2. Significant contract value of $28.7 million over its duration. 3. Procurement utilized full and open competition, suggesting broad market engagement. 4. Contract type is Firm Fixed Price, providing cost certainty. 5. Delivery Order awarded under a larger contract vehicle. 6. Performance period spans five years, indicating a long-term need. 7. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services'. 8. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $28.7 million over five years averages approximately $5.74 million annually. Benchmarking this against similar IT services contracts requires access to a broader dataset of comparable procurements. However, the firm fixed-price structure suggests a degree of cost control and predictability for the government. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates four bids were received, suggesting a reasonably competitive environment for this procurement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that four bids were submitted indicates that the market was engaged, but further analysis could explore if this represents optimal competition for this specific service category.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The submission of four bids suggests that the government received multiple offers, increasing the likelihood of a fair market price being achieved.

Public Impact

The Department of Defense benefits from enhanced IT services to support its operations. Agile Defense, LLC receives a significant contract award, contributing to its revenue and growth. The contract supports IT infrastructure and services, crucial for military operations and data management. The geographic impact is primarily within Virginia, where the contract is administered. Potential workforce implications include job creation or utilization within the IT sector, particularly for Agile Defense, LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single vendor for critical IT services could pose risks if performance degrades.
The long-term nature of the contract (5 years) may limit flexibility to adopt newer technologies if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contract is a Delivery Order, suggesting it was awarded under an existing, potentially pre-vetted, contract vehicle.
The contractor, Agile Defense, LLC, is likely experienced in providing IT services to the federal government.

Sector Analysis

The Information Technology (IT) services sector is a vast and critical component of federal spending. This contract falls under 'Other Computer Related Services' (NAICS 541519), which encompasses a wide range of IT support, consulting, and integration services. The federal government is a major consumer of IT services, with spending often driven by modernization efforts, cybersecurity needs, and the maintenance of complex legacy systems. Comparable spending benchmarks would typically be found within broader IT services categories, where billions are spent annually across various agencies for similar support functions.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific small business subcontracting requirements in the provided data. This means that the primary award went to Agile Defense, LLC without a specific mandate to prioritize small business participation. While the prime contractor may voluntarily engage small businesses, there is no explicit mechanism in this data to ensure or track their involvement. This could limit opportunities for small businesses to participate in this specific federal contract.

Oversight & Accountability

The provided data does not detail specific oversight mechanisms for this contract. However, as a Department of Defense contract, it would typically fall under the purview of the DoD Inspector General for audits and investigations. The firm fixed-price nature of the contract provides a degree of financial oversight by limiting cost increases. Transparency would be enhanced through contract award databases like FPDS, where basic details are publicly available. Further oversight would depend on the specific terms within the contract and the agency's internal management processes.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Risk of vendor performance issues impacting critical IT functions.
Dependency on contractor's cybersecurity practices.
Long-term contract duration may limit adoption of emerging technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to AGILE DEFENSE, LLC. INFORMATION TECHNOLOGY SERVICES

Who is the contractor on this award?

The obligated recipient is AGILE DEFENSE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $28.7 million.

What is the period of performance?

Start: 2021-08-02. End: 2026-08-01.

What is the track record of Agile Defense, LLC in securing and performing federal IT contracts?

Agile Defense, LLC has a history of securing federal contracts, primarily within the IT services domain. Analyzing their past performance requires accessing detailed contract databases to identify the types of services rendered, contract values, agencies served, and any performance ratings or disputes. A review of publicly available data suggests they have experience with various federal agencies, including the Department of Defense. Understanding their specific expertise in 'Other Computer Related Services' (NAICS 541519) and their success rate in competitive bidding processes would provide further insight into their capabilities and reliability as a contractor.

How does the $28.7 million contract value compare to similar IT services contracts awarded by the Department of Defense?

The $28.7 million contract value over five years, averaging approximately $5.74 million annually, places this procurement in the mid-tier range for federal IT services. The Department of Defense awards numerous IT contracts, with values ranging from small task orders to multi-billion dollar programs. To provide a precise comparison, one would need to analyze a cohort of similar 'Other Computer Related Services' contracts awarded by the DoD within a comparable timeframe, considering factors like contract duration, scope of work, and competition level. This contract appears to be a standard, competitively awarded service agreement rather than a large-scale modernization or system development initiative.

What are the primary risks associated with this contract for the Department of Defense?

Key risks for the Department of Defense include potential performance issues if Agile Defense, LLC fails to deliver services as specified, leading to disruptions in IT operations. There's also a risk of cost escalation if the firm fixed-price contract contains poorly defined scope or if change orders become extensive, though the FFP structure aims to mitigate this. Vendor lock-in is another concern, where the government might become overly reliant on Agile Defense's specific solutions, making future transitions difficult or costly. Finally, cybersecurity risks are inherent in any IT services contract; ensuring robust security protocols are maintained by the contractor is paramount.

How effective is the 'full and open competition' approach in ensuring value for money for this specific IT services contract?

The 'full and open competition' approach is generally considered effective in promoting value for money by encouraging multiple vendors to bid, thereby driving down prices and fostering innovation. For this $28.7 million IT services contract, the receipt of four bids suggests a degree of competition was achieved. However, the ultimate value for money depends on the quality of the services delivered relative to the price paid. While competition is a strong indicator of potential value, ongoing performance monitoring and post-award evaluations are crucial to confirm that the government is indeed receiving optimal value throughout the contract's duration.

What are the historical spending patterns for 'Other Computer Related Services' (NAICS 541519) within the Department of Defense?

Historical spending patterns for NAICS 541519 within the Department of Defense typically show significant and consistent investment in IT support and related services. This category often includes a wide array of services such as IT consulting, systems integration, network management, and technical support. DoD spending in this area is driven by the need to maintain complex military networks, support advanced technological systems, and ensure operational readiness. Analyzing historical data would likely reveal a substantial annual spend, with fluctuations based on specific modernization initiatives, budget allocations, and evolving technological requirements across different branches of the military.

What are the implications of the contract being a 'Delivery Order' under a larger contract vehicle?

A Delivery Order (DO) signifies that this specific contract is a task order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) or other type of multiple-award contract. This implies that the initial contract vehicle itself underwent a competitive process, and this DO represents a specific call for services within the scope of that larger agreement. The implications include potentially faster procurement cycles for the DO, as much of the foundational vetting and competition may have already occurred. However, it also means the overall value and terms are influenced by the parent contract, and oversight needs to consider both the DO and the underlying IDIQ.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR STE 440, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,298,765

Exercised Options: $28,690,095

Current Obligation: $28,690,095

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $3,941,833

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA023

IDV Type: IDC

Timeline